British Pound: BoE hawks get support from UK data – Rabobank
Rabobank strategist Elwin de Groot observes that stronger-than-expected UK GDP has provided fresh ammunition to Bank of England (BoE) hawks, even as the Bank remains reluctant to tighten further. Growth was broad-based, with investment and GDP per capita both rising.
Rabobank strategist Elwin de Groot reveals that UK GDP that exceeded expectations has bolstered support for Bank of England (BoE) hawks, despite the Bank's hesitation to tighten monetary policy further. The growth was widespread, with both investment and GDP per capita experiencing an uptick. UK strategist Stefan Koopman from Rabobank cautions that Britain typically exhibits robust first halves, followed by weaker second halves.
He points out that 2026's performance may break this trend. Even within the UK, the Bank of England has shown reluctance to implement further tightening measures. The stronger-than-anticipated GDP data offered ammunition for the hawks. Koopman highlights the importance of 2026's pattern.
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